13 Sep Built to Sell Radio: From Zero to $1.2 Million ARR Exit In 2 Years
Paul J. Farrell built Nehemiah Security, a software company that helped organizations understand and calculate the risks associated with a cyber-attack.
In just two years, the business grew to around $1.2 in Annual Recurring Revenue (ARR) despite sales cycles of up to nine months. Cyber security software companies can trade for 8-10 times revenue, so when Nehemiah’s financing fell away, Farrell and his wife were willing to cover the company’s burn rate personally.
Then COVID hit, sales cycles ground to a halt, and Farrell became increasingly uncomfortable funding his operating deficit. He decided to sell to ThreatConnect, a cyber security software provider that could sell Nehemiah’s offering to its security-conscious customers.
Lots to dig into in Farrell’s story, including:
- How to get a family office to invest in your business.
- How to manage people with more technical skills than you.
- The role industry conferences play in your journey to sell.
- The definition of a “Ben Franklin” list.
- A list of things to do to prepare your company to be sold.